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What Would Be the Equal Annual Annuity for Wallflowers Florist

Question 2

Multiple Choice

What would be the equal annual annuity for Wallflowers Florist, Inc. if the cost of capital is 10% and the initial investment is $50,000 (rounded) ?  Year  Cash Inflows 1$25,0002$30,0003$10,000\begin{array} { | l | l | } \hline \text { Year } & \text { Cash Inflows } \\\hline 1 & \$ 25,000 \\\hline 2 & \$ 30,000 \\\hline 3 & \$ 10,000 \\\hline\end{array}


A) $2,024
B) $5,033
C) $1,257
D) $8,358

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